Which One of the Following Is a Distinguishing Characteristic of an Investment

question 6

Multiple Choice

Which one of the following is a distinguishing characteristic of an investment centre?

• A)It includes significant uncontrollable fixed costs.
• B)Performance can be evaluated with both profitability and return on utilizing assets.
• C)This type of responsibility centre only generates revenues.
• D)Revenues are rarely generated by selling products.

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Definitions:

Buyout

A financial agreement where one party offers to purchase the ownership stake of a company or a portion of its assets.

Organization

An entity composed of people and resources structured in a way to achieve specific goals, often through coordinated activities and processes.

Employee Surplus

A situation in which a company has more employees than needed, often leading to layoffs, reassignments, or other workforce adjustments.

Hiring Freeze

A temporary halt in the recruitment process, typically implemented to reduce costs or reassess staffing needs within an organization.